There could be a lot of other variables involved here but at the end of the day $175,000 is way off base. I doubt if Saddam’s gold plated bathrooms cost that much.
One thing I know for sure is that during the later stages of construction as the project winds down and you approach a contractor with a owner requested change order is to expect an unbelievably and unrealistic cost.
Perhaps the contractor had been burnt during constuction or on previous change orders, the owner is late on payments or disputing other submitted costs, or the fact that the contractor just wanted to finish and move on to the next project because this area is remote and cold and there are supply chain problems. None of this justifies the $175,000 but these thigs play in to that.
In my couple decades of experience with major oil companies, I suspect that “simple” bathroom was required to meet all specifications applied to an processing unit.
I’ve had similar experiences where a major oil company request bids for small warehouse with a couple offices. But they will not waive their industrial specifications and use normal commercial construction. And then they are shocked with the price. Been down that road several times.